Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation $7,670 199 1, 190 Rental cost Buying cost Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. Total Cost $ 10, 720 ($ 9, 631 is interest) 2,140 1, 230 4,500 1,089 2,300

Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation $7,670 199 1, 190 Rental cost Buying cost Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. Total Cost $ 10, 720 ($ 9, 631 is interest) 2,140 1, 230 4,500 1,089 2,300

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 6FPE: Calculating required down payment on home purchase. How much would you have to put down on a house...

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Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation Rental cost Buying cost $ 7,730 174 1,180 Assume an after-tax savings interest rate of 8 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. Total Cost $ $ 7,998 6,100 $ 10,600 ($ 9,637 is inte: 2,160 1,110 4,500 963 1,800
Rental Costs Buying Costs Annual mortgage payments Property taxes Insurance/maintenance $8,270 205 $10,320 ($9,628 is interest) 2,480 1,910 4,500 Annual rent Insurance Security deposit 1,540 Down payment/closing costs Growth in equity Estimated annual appreciation 692 2,500 Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. (a) Calculate the total rental cost and total buying cost. (Round your intermediate calculations and final answers to the nearest whole number.) Total Cost Rental cost Buying cost (b) Based on the cost criteria, would you recommend buying or renting? Renting Buying
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Buy On Time or Pay Cash Cost of Borrowing 1. 2. 3. 4. 5. 6. 7. 8. Cost of Paying Cash 9. 10. Terms of the loan a. Amount of the loan b. Length of the loan (in years) c. Monthly payment Total loan payments made ($ per month Less: Principal amount of the loan Total interest paid over life of loan Tax considerations: - Is this a home equity loan? - Do you itemize deductions on your federal tax return? What federal tax bracket are you in? Taxes saved due to interest deductions ($ %) Total after-tax interest cost on the loan X months) Annual interest earned on savings (6% X Annual after-tax interest earnings ($ %) X $10,000.00 5 $188.70 no yes 35% $ $ $ 00 00 $
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Rental Cost: yearly rent 8000; insurance 250; security deposit 500 Buying Cost: yearly mortgage 14000 (7000 is interest); property taxes 3000; insurance and maintenance 1500; down payment and closing cost 4000; growth in equity 450; appreciation 1200 3% on savings 27% tax bracket What is the rental cost?
Use the loan amortization table: Purchase price of a used car $5,533, Down payment $1,153, number of monthly payments 48, Amount financed $4,380, Total of monthly payments $5,589.76, Total finance charge $1,209.76, APR 13%. What is the monthly payment by table? What is the monthly payment by formula?